McDonald's, McDharma's in Big McBattle Over Name

Article by Keith Muraoka
Santa Cruz Sentinel

LIVE OAK - McDharma's restaurant is bad for McDonald's karma.

The owners of McDharma's, a vegetarian fast-food restaurant, are having a
McBattle with the multi-million-dollar hamburger chain over their restaurant's
name. McDonald's claims McDharma's names misleads the public, creating confusion
between the restaurants.

There's not much similarity, however, between Dharma dogs and Brahma burgers
- two of McDharma's vegetarian specialties - and Big Macs and Chicken McNuggets.

But owners Bernie Shapiro and Daniel Prather aren't losing any sleep over
the issue. In fact, they're enjoying the free publicity they're getting.

"We're honored that they would pick on us," said Shapiro. Prather
added, "We're just trying to ride the wave. Business is really picking
up. But the whole thing is a joke. Every single person that comes in and hears
about it, can't believe it."

According to Prather, McDharma's name comes from
the Eastern philosophical word "Dharma," meaning to live in balance with the Earth or right
livelihood. They added the prefix "Mc" to it since it implies fast
food.

The owners said McDonald's has not sued yet, but
the pair have received intimidating letters threatening action, and an offer
of a "minimal" amount of
money for them to change the McDharma's name.

John Horowitz, an attorney for McDonald's at the chain's corporate headquarters
in Oak Brook, Ill., could not be reached for comment. Terri Capatosto, media
relations director for McDonald's, could not say positively whether any compensation
had been offered.

"If we did, it was simply a gesture of goodwill on our part," she
said. "We're simply trying to be fair about it."

However, Shapiro and Prather have the letters to
prove an offer was made. While declining to disclose the amount, Shapiro
said, "We're willing to
take the money or, at least, consider taking it. We don't want an exorbitant
amount, but we would want a reasonable amount. Now, they're virtually offering
nothing."

McDonald's has already won one battle. The hamburger conglomerate successfully
prevented McDharma's from receiving a copyright and trademark for its name
by challenging the registration application with the federal registrar's office
in Washington, D.C.

That means only that McDharma's is not copyrighted and that other businesses
can use the name. As for forcing McDharma's to change its name, that's another
battle.

We've had the business - and our name - for five
years," said Prather. "They
really have no case. All they can do is take us to court."

Capatosto contended that McDonald's simply doesn't want the public to be
misled regarding McDharma's.